LPG Prices Await February Adjustment

Consumers and businesses across Bangladesh are set to learn whether liquefied petroleum gas (LPG) prices will rise or fall in February, as the Bangladesh Energy Regulatory Commission (BERC) prepares to announce the new retail rates on Monday, 2 February. The revised price will take immediate effect and remain valid for the entire month of February, shaping household and commercial energy costs nationwide.

In a notice issued on Sunday, 1 February, BERC confirmed that the upcoming adjustment would be based on the Saudi Contract Price (CP) for February 2026, as declared by Saudi Aramco. This benchmark is widely recognised as a key reference point for LPG pricing in South Asia and beyond. The commission will formally disclose its decision during a press briefing scheduled for 3:00 pm at the hearing room of its headquarters at the Institution of Engineers, Bangladesh (IEB), in Dhaka.

International market dynamics play a decisive role in determining domestic LPG prices. The Saudi CP reflects global trends in the prices of propane and butane, the two principal components of LPG. In addition to this benchmark, BERC factors in several other cost elements, including the US dollar exchange rate, maritime freight charges, terminal handling fees, bottling expenses, and distribution and marketing costs. By aggregating these components, the commission aims to ensure a transparent and formula-based pricing mechanism, which is reviewed and adjusted on a monthly basis.

In January, the retail price of a standard 12-kilogram LPG cylinder was set at Tk 1,306. This represented an increase of Tk 53 compared with December, when the same cylinder was priced at Tk 1,253. The month-on-month rise added to household expenditure, particularly for urban residents, restaurants, hotels, and small businesses that rely heavily on LPG due to limited access to piped natural gas. For many low- and middle-income families, even modest price increases can have a noticeable impact on monthly budgets.

Energy analysts note that global LPG prices often fluctuate during the winter season, as demand rises in colder regions for heating and cooking. Production levels in the Middle East, geopolitical developments, and shifts in global energy demand can all contribute to short-term volatility. These international movements are quickly transmitted to import-dependent markets such as Bangladesh.

A snapshot of recent LPG prices is shown below:

MonthPrice of 12 kg Cylinder (Tk)Change
December 20251,253
January 20261,306+53

If the February price is increased further, consumers may face additional pressure at a time when living costs remain elevated. Conversely, a reduction would offer welcome relief, especially to households, small eateries, bakeries, light industries, and transport-related businesses that depend on LPG for daily operations.

Overall, anticipation remains high as consumers and traders alike await Monday’s announcement. The decision will not only influence household kitchens but also ripple through various sectors of the economy, making February’s LPG price adjustment a matter of widespread public interest.

Leave a Comment